Iran: Ahamdinejad calls for parliament's cooperation

Mahmoud Ahmadinejad has written a letter to
the speaker of Iran's Parliament, Ali Larijani in an attempt to resolve the
differences between the parliament and government over cutting public subsidies.

In the letter which was published by Fars News
Agency, Ahmadinejad states that the approved bill on government subsidies is
"highly complex" and riddled with "major problems for both producers and
consumers which would result in irreparable damages to the country's economy."

He thus urges the parliament to create a "minimal condition" in which the bill
could become "executable."

The government is trying to implement a plan to end its costly government
subsidies. Ahamdinejad wants to draw upon $40 billion of saving through cutting
subsidies but the parliament has only approved a more gradual process and
allowed $20 billion of savings for the government which would be gradually
increased in the course of five years.

Ahamdinejad had earlier announced that he will not put the subsidy act into
effect and a number of lawmakers have accused him of "violating" the law.

Speaker of the executive committee of the parliament, Mohsen Kouhcan told Fars
News Agency that the House will soon respond to Ahamdinejad's letter "in a
friendly atmosphere toward interaction of the powers."

He also added that Ali Larijani has called a group of MPs to establish a series
of meetings in order to "reach a common understanding" of the issue.

Earlier the Economic Commission of the Parliament had declared Ahamdinejad's
proposal of radical cuts to the subsidies would create a leap in inflation and
cause extensive pressure on people.

The new committee established to review the matter are comprised of different
MPs and this could indicate that the parliament is thus planning to capitulate
to Ahmadinejad's demands.

Yesterday Ruhollah Hoseinian announced that they have prepared a reform bill
allowing the government savings of $35 billion through subsidy cuts, adding that
the bill has been already signed by 100 lawmakers.